UAE signs up two firms for power venture

The UAE said yesterday it set up a Dh624 million ($169.9 million) joint venture with a consortium of France's TotalFinaElf and Tractebel to work on a major power project in Abu Dhabi.

An Economy and Commerce Ministry statement said Gulf Total Tractebel Power Co's capital was distributed over 62.4 million shares with a nominal value of Dh10 each. TotalFinaElf and Tractebel, the energy arm of France's Suez Lyonnaise des Eaux, each own 20 per cent of the firm which will be responsible for the Taweelah A1 power station and desalination plan, Abu Dhabi's second independent water and power project.

The Gulf Power Co, a wholly owned subsidiary of Abu Dhabi Water and Electricity Authority (Adwea), owns the remaining 60 per cent. Taweelah A1 is the first asset sale to an international company in the emirate.

TotalFInaElf and Tractebel in July signed a $1.5 billion contract with Adwea for Taweelah A1 to upgrade and expand the facility to provide about a quarter of power and water needs of Abu Dhabi.